Active Bond
Definition of 'Active Bond'A bond or other fixed-income security that is frequently traded on the New York Stock Exchange. Active bond orders are typically filled quickly due to the presence of higher demand from investors and generally have lower bid-ask spreads. |
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Investopedia explains 'Active Bond'Active bonds are traded by active bond crowds, which are traders that buy and sell bonds that are frequently traded. This is different than bonds infrequently traded, which are traded by the inactive bond crowd. Because of the higher liquidity of active bonds, active bond traders are better able to dictate prices. |
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